(C. L. 148)

SERVICE CONNECTION CHARGES-Continued:

superseding another subscriber without charge if no
interruption of service, change in name, location, or
type of equipment, approved

PAGE

645

thoroughly discussed, and approved (Mont.)......782-793, 811, 817
STATE-WIDE THEORY:

approved (Mont.)

cases approving, noted..

constitutional and statutory law do not treat telephone
industry as local concern, state recognizes telephone as
instrument principal value of which rests in its connec-
tion with multitude of other instruments (Mont.).....
grouping of exchanges:

commissions passing on, cases quoted...

666, 683
684-688

683

802-804

groups based on exchange stations, fixed (Mont.)... 670, 806
811-812, 814-815

throughout state, for rate purposes, approved

(Mont.)

STOCK. See Securities: stock.

..670, 801-802, 806-809, 811-812, 814-815

STOCKHOLDERS. See Management. Rates: discriminatory.
SUPPLY CONTRACT. See Western Electric Company.
TAXES. See Operating Expenses.

TOLL:

commissions, 10% but not exceeding 10 cents on any one
message authorized (Mo.)......

property, elimination of, method used same as employed in
Minnesota Rate Case (S. D.).....

rates:

basis of:

appointment and messenger rates, discussed
(Mont.),

differentials for other classes of toll rates based

on station-to-station rates (Mont.).

night rates, discussed (Mont.).

648, 650

863

..753, 760-762

756

.753, 763-765

overtime rates, discussed (Mont.).........753, 765, 774-775

service classification, six classifications recognized

and established by toll rate schedule, dis-

cussed (Mont.)

station-to-station rates:

discussed (Mont.)

740-753

.753, 756-758

long and short haul, discussed (Mont.)...758-759, 774

TOLL Continued:

rates continued:

(C. L. 148)

interexchange service, free:

continuation between specified exchanges follow-
ing sale of property, approved (Ind.).......
flat rates sufficiently high to cover, unreasonable
and not in line with good business principles
(Wash.)

re-establishment, cost of giving would enlarge
loss already sustained, not approved (Wash.).
interexchange service, toll:

PAGE

632-633

877

877

application of, places burden of expense of toll
service upon parties making use of it (Wis.)
establishment approved

898

877-878

non-subscribers calls from subscriber's station, sub-

scriber responsible for (cases noted) (Ariz.) . . . .
person-to-person calls, increase but not as requested,
authorized

613-614

824-828

824-828

station-to-station calls, for, increase authorized.....

report charge:

basis of, discussed (Mont.)..

standard charge, authorized

service:

66

753, 762-763

.886, 888-889

...

no toll" service, establishment where there is slight
demand for same and to do so would be contrary
to interests of subscribers not requiring such
service, not approved (Ariz.). . . .
non-subscriber calls from subscriber's station, in-
ability of subscriber to properly police placing of
long distance calls, installation of coin boxes or
booths recommended (Ariz.)....

value, state recognizes telephone as instrument prin-
cipal value of which rests in connection with
multitude of other instruments (Mont.)........
UNIT COSTS. See Valuation of Property: basis of, various
items.

VALUATION OF PROPERTY:

basis of, in general:

appraisal, in making, 10% check of all property in
state made (Mont.)...

612-615

615

683

690

original cost, impossible to obtain, because of in-
accurate records (Wash.).....

principles controlling:

adequate service at reasonable rates and encour-
agement of investments for extension and
perfection of responsible and well managed
utility, legislative policy requiring, recognized
(Mont.)

PAGE

874

607

cost of labor, materials, etc., at time of investi-
gation, must be accorded weight (Mont.)...667, 691-692
cost, original or otherwise, or value at time of
construction does not determine present fair
value (Mont.) ...

...

667, 691

...666-667, 691

present fair value as of time when inquiry made,
value to be determined (Mont.). . . . . .
reproduction cost at time of investigation
important element and to be given due weight
(Mont.) ...

principles for determining, as stated in various cases,
fully noted

.....

reproduction cost new:

667, 691

....

693-697

874

considered in fixing fair value (Wash.)....
determination of rate base exclusively upon

theory of, rejected (Mont.). . . . . .. . . . . 667, 698-699, 700
minus depreciation:

considered in fixing fair value (Wash.)...
used (Mont.)

summary of valuation at given date, tabulated (Mont.)

basis of, various items:

construction work in progress at current prices since
date of valuation, included (Mont.)..

going value:

874

699

697

....667, 699–700

....668, 711-712

allowance for, company's figures in absence of
of any other evidence as to item, allowed
(Mont.)
amount representing excess of expenses over
revenues after service started and prior to
completion of plant and development of fair
return on all expenditures, included (Mont.).
capitalization of past deficits as foundation for,
rejection of, cases noted.....

710

707-708

(C. L. 148)

VALUATION OF PROPERTY- Continued:
basis of, various items continued:
going value- continued:

definition and appraisal of item with per cent.
allowances, numerous cases noted....
lack of proper accounting system and failure to
understand problem in past, make it necessary
to assume expenditures and transactions which
may or may have been part of (Mont.),....
promoting, organizing and financing company,
preliminary and development engineering,
training employees for telephone work, at-
taching business, developing routines, records
and instructions, and fair rate necessary to
finance undertaking, considered in determin-
ing (Mont.) .....

metallic line reconstructed at expense of transmission
company by agreement where there was induction,
value of, included in telephone company's prop-
erty (Neb.)

......

"non-operating," additional unused lines considered,
and excluded (Wash.).

overhead costs:

interest during construction:

3.3% of depreciated value allowed for
(Mont.)

PAGE

709

711

710

830

874

.667, 702-704, 712

judgment of company's engineer based on
years of actual construction and develop-
ment of telephone properties, considered
in fixing allowance for (Mont.) . . . . . .
principles involved and representative
allowances for, numerous cases cited....
omissions and contingencies, 3% of depre-
ciated value less land, allowed for (Mont.). .

704

703

667
701-702, 712

909

proposed replacements, cost of, included in value for
rate purposes (Wis.).

unit costs:

current at time of inquiry, use of, cannot be dis-

basis of, various items - continued:

working capital - continued:
allowance for· continued:

one-twelfth of operating expenses for 1922,
one-twelfth of amount charged in unbilled
tolls plus amount representing inventory
figure for materials and supplies as
shown by company's books at end of year,
unsatisfactory method (Mont.)......
company evidence based on averages of monthly
balances for twelve months taken directly
from detailed records kept by exchanges, satis-
factory and company's figure allowed (sum-
mary tabulated) (Mont.)...
experience furnishes persuasive evidence of
proper allowance for, theoretical methods or
dependence upon estimates or opinions not
necessary (Mont.)........

PAGE

706

.706-707, 712

methods employed to ascertain requirement and
various percentages adopted, numerous cases
cited

depreciation:

made

inspection method for determining:

cases noted

used (Mont.)

....

limitations on use produced by deterioration
cannot be ignored, as use gives property value
(Mont.)

per cent. condition found by actual observation

as against per cent. based on figures submitted
by field workers, used (Mont.)..
recorded evidence as to, a recognition by com-
pany that existing deterioration must be meas-
ured even though "service

(Mont.)

..668, 705

704-705

699

698

700

700-701

value" 100%

...700

612-712

rate, purpose, for, fixed......830-831, 834, 850-853, 868, 875-876

WORKING CAPITAL. See Valuation of Property: basis of,

various items.